Annuities

The term "annuity" refers to an insurance contract issued and distributed by financial institutions to pay out invested funds in a fixed income stream in the future. Investors invest in or purchase annuities with monthly premiums or lump-sum payments. The holding institution issues a stream of payments in the future for a specified period of time or the remainder of the annuitant's life. Annuities are mainly used for retirement and help individuals address the risk of outliving their savings.

The prices vary based on mortgage terms.